Mar. 25, 2014, 11:39 AM
- Silver prices below $20/oz. should worry some investors, as several miners may need to adjust their plans if spot prices weaken further, Dundee's Chris Lichtenheldt says as he breaks down how specific companies will be impacted.
- The analyst says Coeur Mining (CDE) is an ideal sell or short candidate, Endeavour Silver (EXK) is essentially breakeven at $19 silver, and Silver Standard (SSRI) has been a top performer YTD but is a high-cost operator.
- As for Dundee's potential winners: Tahoe Resources (TAHO) is a low-cost operator with a best-in-class asset, Silver Wheaton's (SLW) balance sheet is solid above $15 silver, and Pan American Silver's (PAAS) strong balance sheet should provide a cushion as higher-cost operations have improved.
- ETFs: SIL, SLVP, SILJ
Mar. 24, 2014, 3:48 PM
- Gold prices tumbled nearly 2% to settle at five-week lows as investors continued to take profits against the metal's YTD surge with an eye toward an improving U.S. economy and the possibility of an interest rate hike as soon as early next year.
- So Credit Suisse's move today to lift stock price targets for Barrick Gold (ABX -4.1%) and Newmont Mining (NEM -2.1%) was ill-timed as gold miners (GDX -4%) fall sharply across the board.
- On ABX, the firm raises its target to $21 to reflect the company's relatively conservative $1,100/oz. gold price assumption for reserves, exploration upside potential within its asset base (demonstrated by its 15M oz. Goldrush discovery) and strong base of low cost assets.
- On NEM, the firm ups its target to $26 on higher forecast operating cash flow and a higher NAV target multiple, but a resolution of the ore export ban in Indonesia is necessary to become more constructive.
- Also: AU -4.3%, NG -4.9%, GG -3.6%, KGC -4%, NGD -4%, IAG -3.8%, GFI -1.9%, HMY -3.2%, SLW -6.5%, ANV -6.7%, BTG -4.9%.
Mar. 21, 2014, 1:49 PM
- A check of Silver Wheaton (SLW -1%) finds the stock beginning to lose altitude after mixed results and a cut in the dividend last night.
- Q4 silver equivalent production of 9.7M ounces was up 17% from a year ago. Sales volume of 8M ounces fell 13%. Revenue of $287.2M fell 42%. Averaged realized selling price of $21 per ounce fell 33%. Net earnings of $93.9M or $0.26 per share compares to $177.7M or $0.50 per share a year ago.
- Average cash costs of $4.14 per ounce of silver and $394 for gold - virtually unchanged from a year ago.
- Company expects 2014 silver equivalent production of 36M ounces, roughly unchanged from 2013. By 2018, SLW sees 48M ounces of production, up 35% from last year.
- Both Cowen and BMO boost their price targets in wake of the earnings report.
- Press release
Mar. 20, 2014, 5:25 PM
Mar. 20, 2014, 5:10 PM
Mar. 20, 2014, 12:10 AM
Mar. 19, 2014, 5:35 PM
Mar. 3, 2014, 9:55 AM
- Gold futures are surging in the wake of the crisis in Ukraine, and that's giving precious metals miners a big boost in early trading.
- AU +5.2%, GOLD +5%, GFI +4.6%, MUX +4.1%, BVN +3.9%, MVG +3.6%, SSRI +3.3%, IAG +3.2%, BTG +3.1%, HMY +3.1%, EXK +3.1%, ABX +2.8%, AUY +2.8%, SA +2.8%, SLW +2.7%, GG +2.7%, NEM +2.6%, HL +2.6%, KGC +2.3%, AGI +2.2%, AG +1.9%, NG +1.9%, PPP +1.8%, AUQ +1.6%, PAAS +1.2%, NGD +1%.
- ETFs: GDX, GDXJ, NUGT, DUST, SIL, GLDX, JNUG, SLVP, RING, SILJ, GGGG, JDST, PSAU
Feb. 28, 2014, 11:59 AM
- HudBay Minerals (HBM +3.4%) CEO David Garofalo tears into the management at takeover target Augusta Resources (AZC +1.6%), calling the company "essentially insolvent" and warning that its shareholders were at risk without a quick wrap-up in permitting for its Rosemont copper project.
- AZC said this week that it expects to receive its final required permit for Rosemont in H1 of this year, while HBM contends the permitting process will take much longer and could cause serious liquidity problems, noting that a $109M loan comes due in July.
- AZC "really [has] no money, they have significant debt, and that debt is coming due very soon," Garofalo says, adding that two permits AZC has obtained are facing legal challenges, which could delay planned funding from Silver Wheaton (SLW).
Jan. 29, 2014, 9:49 AM
- As equities open in a broad-based decline, precious metals miners show early strength: ABX +4.1%, NG +4.1%, EXK +3.7%, GG +3.7%, IAG +3.3%, SA +2.9%, AG +2.8%, SSRI +3.1%, AUY +2.7%, GOLD +2.5%, NEM +2.3%, MVG +2.3%, SLW +2.2%, PAAS +2.2%, AU +2.1%, KGC +2.2% (Briefing.com).
- ETFs: GLD, SLV, GDX, GDXJ, NUGT, IAU, AGQ, PHYS, DUST, SIL, SIVR, USLV, ZSL, SGOL, UGL, DGP, GLL, GLDX, DZZ, UGLD, DGL, DSLV, DBS, SLVP, GLTR, DGZ, AGOL, DBP, JNUG, DGLD, GLDI, RING, GGGG, SLVO, WITE, SILJ, PSAU, TBAR, JDST, USV, UBG, JJP, RGRP, BLNG.
Jan. 10, 2014, 3:49 PM
- Gold futures settle at a four-week high, rising 1.4% to $1,246.90, as the surprisingly weak jobs report reopens debate over the pace of bond buying at the Fed; precious metals miners are far outpacing the broader market, with the top gold miner ETF (GDX) surging 3%.
- Among the top miners: ABX +2.3%, GG +3.3%, NEM +2.4%, AU +3.8%, KGC +1.3%, GFI +4.3%, AUY +2.8%, RGLD +5.3%, AGI +2%, AEM +4.5%, SLW +4.4%, IAG +1.9%, FNV +1.5%, CDE +2.3%, EGO +3.8%, NGD +2.9%, NG +6.9%, HMY +2.7%.
- ETFs: GDXJ, NUGT, DUST, SIL, GLDX, SLVP, RING, GGGG, SILJ, JNUG, PSAU, JDST.
Dec. 19, 2013, 9:58 AM
- Precious metals stocks are slammed at the open from weakening prices for underlying metals, and the Market Vectors Gold Miner ETF (GDX -2.1%) opens at a new 52-week low.
- GFI -2.8%, AUY -2.4%, AU -3.8%, RGLD -2.7%, NEM -3.1%, ABX -2.1%, GG -2.4%, AGI -3.2%, AEM -2.3%, SLW -2.6%, KGC -1.9%, FNV -1.6%, CDE -1.5%, EGO -1.5%, NGD -1.2%, HMY -1.2%.
- ETFs: GDXJ, NUGT, DUST, SIL, GLDX, SLVP, GGGG, RING, SILJ, PSAU, JNUG, JDST.
Dec. 11, 2013, 2:42 PM
- Gold producers' balance sheets appear relatively stable with gold prices at ~$1,250/oz. but would weaken further on lower prices, TD Securities says in an analysis of miners' sensitivity to changes in gold prices.
- At $1,100/oz, companies with the highest forecast ratio of net debt to total capitalization include Barrick Gold (ABX -2.5%), Newmont Mining (NEM -1.9%), Agnico Eagle Mines (AEM -2.5%) and Detour Gold (DRGDF +3.3%).
- TD's top picks include Eldorado (EGO -3.1%), Goldcorp (GG -1.5%), B2Gold (BTG -3.7%), Primero Mining (PPP -0.6%) and Silver Wheaton (SLW -2%).
- ETFs: GDX, GDXJ, NUGT, DUST, GLDX, GGGG, RING, PSAU, JNUG, JDST.
Dec. 5, 2013, 6:17 PM
- Alexco Resources (AXU) +2.4% AH after releasing a preliminary economic assessment for expanded silver production from the eastern part of its Keno Hill Silver District in Yukon.
- AXU projects average annual delivery of 3.1M oz. of payable silver, 6.8M lbs. of lead, 6.6M lbs. of zinc and 1,050 oz. of gold from ~150K metric tons/year of consolidated mine and mill production.
- AXU's forecast 38% internal rate of return includes its silver purchase agreement with Silver Wheaton (SLW); initial capital requirements are ~$25M.
Dec. 2, 2013, 3:25 PM
- The Market Vectors Gold Miners ETF (GDX -5.5%) plunges to a fresh five-year low thanks to the newest PMI manufacturing data, which climbed to the highest reading since 2011; BTIG analyst Dan Greenhaus calls the data "stunning,” and bad for precious metals.
- Comex gold dropped $28.50, or 2.3%, to settle at $1,221.90 for its lowest close since July; the SPDR Gold Trust (GLD) is down 2.5% to kick off December’s trading.
- Silver slumped 3.7% to $19.29, also the lowest since July.
- ABX -5.3%, NEM -3.8%, GG -4.6%, KGC -3.4%, GFI -3.5%, NGD -8.2%, EGO -7.5%, AEM -7%, AUY -5.5%, AGI -8.9%, SLW -5.7%.
- Other ETFs: GDXJ, NUGT, IAU, PHYS, DUST, SGOL, UGL, DGP, GLL, GLDX, DZZ, UGLD, DGL, DGZ, AGOL, GLDI, DGLD, GGGG, RING, PSAU, TBAR, JNUG, UBG, JDST, SLV, AGQ, SIVR, ZSL, USLV, DBS, DSLV, SLVO, USV.
Nov. 11, 2013, 8:24 AM
- Silver Wheaton (SLW) reported record Q3 attributable silver equiv. production of 8.9M oz. vs. 7.6M oz. in the year-ago quarter, up 17% Y/Y; average realized sale price per silver equiv. oz. was $21.26 vs $31.36 a year ago. (Q3 earnings)
- Q3 total revenues rose 3.2% Y/Y to $166.4M but missed consensus by ~$21M, due largely to the 32% drop in the average realized silver equiv. price.
- Average cash costs were $4.73 per silver equiv. oz. vs. $4.16 a year ago, primarily due to an increase in gold sales (35.3K oz. in Q3 2013 vs. 6.9K oz. in Q3 2012) associated with Hudbay's 777 mine and Vale's Sudbury and Salobo mines; the average cash cost per gold oz. was $386, or $6.30 per silver equiv. oz., reducing margins 39% Y/Y.
- Shares -0.4% premarket.
- ETFs: SIL, SLVP, SLV, AGQ, SIVR, ZSL, USLV, DBS, DSLV, SLVO, USV
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